Correlation Between NYSE Composite and Graphic
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By analyzing existing cross correlation between NYSE Composite and Graphic Packaging International, you can compare the effects of market volatilities on NYSE Composite and Graphic and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in NYSE Composite with a short position of Graphic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Graphic.
Diversification Opportunities for NYSE Composite and Graphic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Graphic is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Graphic Packaging Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging and NYSE Composite is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on NYSE Composite are associated (or correlated) with Graphic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging has no effect on the direction of NYSE Composite i.e., NYSE Composite and Graphic go up and down completely randomly.
Pair Corralation between NYSE Composite and Graphic
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.16 times more return on investment than Graphic. However, NYSE Composite is 2.16 times more volatile than Graphic Packaging International. It trades about 0.14 of its potential returns per unit of risk. Graphic Packaging International is currently generating about 0.0 per unit of risk. If you would invest 1,800,696 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 226,508 from holding NYSE Composite or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
NYSE Composite vs. Graphic Packaging Internationa
Performance |
| Timeline |
NYSE Composite and Graphic Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Graphic Packaging International
Pair trading matchups for Graphic
Pair Trading with NYSE Composite and Graphic
The main advantage of trading using opposite NYSE Composite and Graphic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Graphic can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Graphic will offset losses from the drop in Graphic's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Graphic vs. Simon Property Group | Graphic vs. Acumen Pharmaceuticals | Graphic vs. Asbury Automotive Group | Graphic vs. LB Foster |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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